The Saudi Arabia residential real estate market size was valued at USD 59.71 Billion in 2022 and is likely to reach USD 118.37 Billion by 2031, expanding at a CAGR of 7.9% during the forecast period, 2023–2031. The growth of the market is attributed to the rising population of the country.
In 2020, Saudi Arabia’s population was around 32 million, and it is growing at an annual rate of 2%. Since 45% of the country’s population is under the age of 20, young middle-class people dominated the purchase of houses. In 2019, the real estate transaction volume in major Saudi cities increased significantly. According to the 2030 Vision, the government intends to double the contribution of real estate to the country's GDP to 10% by 2020.
The residential real estate market includes transactions such as sale, lease, and purchase of residential properties, such as villas, bungalows, and apartments. In the past few decades, the global residential real estate industry has achieved a commendable growth due to rapid urbanization in developing regions. Several large cities in developing countries have high requirements. Many government state bodies around the world are actively working to provide affordable housing, providing various profit opportunities for market participants around the world. The rapid urbanization has led to an increase in per capita income in various regions. This change has led to a substantial rise in the number of tourists, thereby significantly improving the efficiency of the real estate industry.
The total housing supply in Riyadh in 2018 was estimated to be approximately 1.29 million units, up by 200,000 units in 2017. In Jeddah, the total housing supply in 2018 was 817,000 units, which was also an increase from the 813,000 units registered at the end of 2017. However, the housing supply in Riyadh is expected to increase by approximately 30,000 units by 2020. Jeddah’s housing supply is expected to increase by 16,000 units in 2020. Despite the current slowdown in the country’s housing market, demand for low- and middle-income housing in Riyadh, Jeddah and DMA (Dammam Metropolitan Area) remained strong in 2020.
Saudi Arabia Residential Real Estate Market Trends, Drivers, Restraints, and Opportunities
-
Increasing demand for affordable housing units is expected to boost the market growth during the forecast period.
-
Rapid growth of the construction industry is driving the market growth in the coming years.
-
Government initiatives, such as encouraging developers to build affordable housing projects, thereby encouraging banks to introduce more residential real estate financing methods, is expected to fuel the market growth during the forecast period.
-
Increasing focus of the government in the country on departing immigrants can restrict the market growth during the forecast period.
-
Lack of housing spaces and mortgage regulation can create challenges for the market growth during the forecast period.
-
Ongoing technological advancements in the construction industry and initiatives taken by Saudi Arabian housing ministry for launching affordable housing projects are projected to create immense opportunities for the market players.
Scope of Saudi Arabia Residential Real Estate Market Report
The report on the Saudi Arabia residential real estate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Residential Real Estate Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Types (Condominiums, Villas, and Others)
|
|
Geographical Zone
|
Saudi Arabia
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
Jabal Omar Development Company, AI Sedan Holding Company, Emaar, Sedco Development, and Abdul Latif Jamal
|
Saudi Arabia Residential Real Estate Market Segment Insights
Condominiums segment is projected to represent a major market share
Based on types, the market is divided into condominiums, villas, and others. The condominiums segment is expected to represent a key market share during the forecast period due to increasing population and migration to urban areas. The profits associated with condominiums profit are high and financial backers usually buy townhouses that are yet under development. They aim of selling them for a profit margin of over 20%, which is expected to drive the segment growth.
Segments
The Saudi Arabia residential real estate market has been segmented on the basis of
Types
- Condominiums
- Villas
- Others
Country
Key Players
- Jabal Omar Development Company
- AI Sedan Holding Company
- Emaar
- Sedco Development
- Abdul Latif Jamal
Competitive Landscape
Key players competing in the residential real estate market include Jabal Omar Development Company, AI Sedan Holding Company, Emaar, Sedco Development, and Abdul Latif Jamal
The government’s vision of reducing its reliance on the oil industry and diversifying into other industries, especially real estate, has driven the growth of Saudi Arabia’s real estate industry. The market is fiercely competitive, and the demand for new properties is also growing due to the increasing commercial activities and intensified competition. The competition among developers mainly focuses on parameters such as property location, upcoming projects, construction costs, and company reputation.
Request For Customization
Enquiry Before Buying
Speak With Analyst
